List of Best Metal Stocks in India 2024
Metals are used in manufacturing almost everything we use in our daily lives. If you are constructing your ideal home, metals are required. In addition, the car you drive is composed of several metals. Have you ever considered investing in a business that extracts and processes metals?
In this blog, we will discuss the metal industry in India and share the top metal stocks based on market capitalization and 1-year returns.
Overview of the Metal Industry
India is regarded as a mineral-rich nation due to its abundance of minerals, such as iron ore, manganese, and other elements. The companies that extract minerals are called metal and mining corporations. They take minerals out of the mines, refine them, and supply them to various businesses, including the automotive and infrastructural sectors. These businesses increase the nation’s manufacturing activity by growing its GDP, generating employment, and boosting its foreign exchange reserves through exporting its goods.
Top Metal Stocks Based on Market Capitalization
The Top Metal Stocks in 2024 are:
| S.No. | Metal Stocks |
|---|---|
| 1 | Hindustan Zinc Limited |
| 2 | JSW Steel Limited |
| 3 | Tata Steel Limited |
| 4 | Vedanta Limited |
| 5 | Hindalco Industries Limited |
The metal stocks have been listed in descending order based on their market capitalization in the table below:
| Company | Market Capitalization (In Crores) | Current Market Price (INR) | 52-Week High | 52-Week Low |
| Hindustan Zinc Limited | 2,50,984 | 594 | 808 | 285 |
| JSW Steel Limited | 2,21,338 | 905 | 959 | 723 |
| Tata Steel Limited | 1,89,512 | 152 | 185 | 114 |
| Vedanta Limited | 1,67,697 | 429 | 507 | 208 |
| Hindalco Industries Limited | 1,39,979 | 623 | 715 | 438 |
Best Metal Stocks in India Based on Market Capitalization – An Overview
A brief overview of the best metal stocks in India is given below:
1. Hindustan Zinc Limited
In 1966, the corporation was established as a Government of India enterprise. The company’s primary goal is to use the nation’s substantial zinc resources. The company was sold to the Vedanta Group in 2002. Silver is a byproduct of mining for zinc and lead, and the company became one of the world’s leading producers of integrated silver by selling it. The company’s headquarters is located in Udaipur, Rajasthan.
2. JSW Steel Limited
Sajjan Jindal established the business in 1982 when the Jindal group acquired Piramal Steel Limited and named it Jindal Iron and Steel Company (JISCO). The company strengthened its market position by setting up its first steel plant in 1982 near Mumbai. In 1994, Jindal Vijayanagar Steel Limited (JVSL) started its operations by setting up a steel plant in Karnataka. JISCO and JVSL merged to form JSW Steel Limited in 2005. The company’s headquarters is located in Mumbai.
3. Tata Steel Limited
Originally known as Tata Iron and Steel Company Limited (TISCO), the company was founded in 1907 by the renowned Indian industrialist Mr. Jamsetji Tata. In 1911, the company opened its first plant and began producing steel. During the Second World War, the company supplied steel to defense companies. In 2004, the company expanded its international reach by purchasing the Singapore-based company NatSteel Holding. Since then, it has made several domestic and international acquisitions, the most recent of which was in 2018 when it acquired Bhushan Steel Limited. The company is headquartered in Mumbai.
4. Vedanta Limited
The company’s history can be traced back to the 1980s when it was known as Sterlite Industries (India) Limited. Initially, the business manufactured wires and cables for the telecommunications sector. Later, in 1992, it focused on refining and smelting of copper. In 2003, the business was incorporated in London as Vedanta Resources Limited and started to get itself listed on the London Stock Exchange. In 2007), Vedanta acquired Sesa Goa Limited, a major player in the Indian iron ore mining industry. The company’s headquarters is situated in Mumbai.
5. Hindalco Industries Limited
The company was founded by the Aditya Birla Group and began operations in 1958. The company established India’s first integrated aluminum facility at Renukoot, Uttar Pradesh. They expanded their product line later in 1980 and started smelting copper. The corporation was involved in several mergers and acquisitions in the past. Hindalco has been ranked as the most sustainable aluminum company, according to the Dow Jones Sustainability Indices. The company’s headquarters is in Mumbai.
Top Metal Stocks Based on 1-Year Return
The metal stocks have been listed in descending order based on their 1-year returns in the table below:
| S.No. | Metal Stocks Company | 1-Year Return |
|---|---|---|
| 1 | Southern Magnesium and Chemicals Limited | 360.90% |
| 2 | POCL Enterprises Limited | 204.59% |
| 3 | Pondy Oxides and Chemicals Limited | 200.07% |
| 4 | Cubex Tubings Limited | 199.15% |
| 5 | Nile Limited | 179.15 % |
Best Metal Stocks in India Based on 1-Year Return – An Overview
The best metal stocks according to 1-year returns are given below, along with a brief overview:
Southern Magnesium and Chemicals Limited
The business was started in 1985 by Dr. N.B. Prasad and his family. The company formed a joint venture with Andhra Pradesh Industrial Development Corporation Limited to establish its first manufacturing facility in Andhra Pradesh. The company began producing magnesium metal on a commercial basis in 1990, making it the first one in India to do so. December 1993 saw the company’s public listing. Hyderabad is home to the organization’s headquarters.
POCL Enterprises Limited
The company was established in 1988 and focused on manufacturing zinc, lead, and metallic oxides. The company has acquired two-star export house status, which indicates that the company contributes significantly to the country’s exports and global trade. The company caters to the needs of various industries, including automotive, electronics, construction, and batteries. The company’s headquarters is situated in Chennai.
Pondy Oxides and Chemicals Limited
When the company was founded in 1995, its primary goal was to produce lead and lead alloys for the domestic market. Subsequently, the company broadened its range of products to include zinc alloys, PVC stabilizers, and plastic additives. In 2003, it opened a new facility in Tamil Nadu to produce lead-acid batteries. In 2019, they made history as the first Indian LME (London Metal Exchange) brand and got registered on the London Metal Exchange. The company’s headquarters is situated in Chennai.
Cubex Tubings Limited
The company was founded in 1979 and specializes in producing goods made of copper alloys. In 1993, the company was listed on both the Hyderabad Stock Exchange and the Bombay Stock Exchange. The company’s clientele consists of NTPC, SIEMENS, etc. The company’s headquarters is in Hyderabad.
Nile Limited
The company was founded in 1984, and its primary goal is to manufacture lead products and supply them to lead acid battery manufacturers. The company has two secondary lead recycling plants near Hyderabad and Chennai, with a combined capacity to produce 1,07,000 tons of lead and lead alloys annually. They began exporting their goods to other nations in 2001. Additionally, the company also operates a 2MW wind farm in Ramagiri, Andhra Pradesh. Hyderabad is home to the organization’s headquarters.
Key Performance Indicators (KPIs)
| Company | ROE (%) | ROCE (%) | Debt to Equity (x) | P/E | P/B |
| Hindustan Zinc Limited | 51.06 | 48.85 | 0.56 | 30.84 | 16.52 |
| JSW Steel Limited | 11.34 | 12.99 | 1.1 | 30.24 | 2.86 |
| Tata Steel Limited | -4.82 | 8.13 | 0.89 | -46.14 | 2.06 |
| Vedanta Limited | 13.79 | 24.09 | 2.34 | 32.22 | 5.46 |
| Hindalco Industries Limited | 9.56 | 10.34 | 0.51 | 13.78 | 1.32 |
| Southern Magnesium and Chemicals Limited | 34.24 | 46.38 | 0.25 | 27.83 | 13.26 |
| POCL Enterprises Limited | 26.03 | 47.45 | 1.54 | 16.71 | 5.24 |
| Pondy Oxides and Chemicals Limited | 8.92 | 16.91 | 0.28 | 43.68 | 4.99 |
| Cubex Tubings Limited | 5.76 | 9.85 | 0.22 | 41.64 | 2.40 |
| Nile Limited | 13.55 | 17.80 | 0.05 | 19.59 | 3.44 |
Benefit of Investing in Metal Stocks
There are various benefits of investing in metal stocks, a few of which are mentioned below-
- Diversification – Investing in the metals industry provides diversification benefits and lowers the risk in your portfolio.
- Global Demand – The expansion of infrastructure around the world is driving up demand for metal, which boosts the earnings of metal companies.
- Price of Commodity – Companies in the metals sector give you indirect exposure to commodities, so investors profit if the prices of the commodity rise.
Factors to be Considered Before Investing in Metal Stocks
Before making any investment in the metal stocks, there are various factors to be taken into consideration:
- Geopolitical Risk – A trade war or other political unrest can have a detrimental effect on the supply chain and impact the profitability of metal companies.
- Government Policies – The government’s policy changes and further restrictions on the import and export of metals and related products can affect the earnings of enterprises in the metals sector.
- Financials of the company – One should carefully review the company’s financial reports before purchasing any metal stocks to determine whether the business is worth investing in.
Future of Metal Sector in India
India’s economy relies on the metal industry since it forms the foundation of the nation’s main sectors, such as construction and automotive. In addition, by launching the Made in India project, the government is utilizing several tactics to increase the manufacturing sector’s contribution to the GDP. The expansion of this industry is aided by the development of infrastructure, particularly railroads. These factors make this sector attractive to investors.
Conclusion
In conclusion, government actions and the emphasis on infrastructure development appear to have a positive outlook for the metal sector in India. The rise in demand for metals like copper, aluminum, steel, etc., will increase the revenues of companies operating in the metal sector. However, there are several risks associated with companies in the metal sector, and an individual should consult a financial advisor before investing.
Frequently Asked Questions (FAQs)
Which companies operate in India’s metal sector?
According to market capitalization, India’s top metal companies are Hindustan Zinc, JSW Steel, Tata Steel, Vedanta, and Hindalco Industries.
How can I identify the best metal stocks to invest in?
A company’s financial statements, which have information regarding the clientele, profit margin, and other metrics, must be examined to determine which metal stocks offer the best investment opportunity.
Is it worth investing in the metal sector?
Yes, one can invest in the metal sector due to its growth prospects, but only after considering their risk tolerance or consulting a financial advisor.
Which city is known as the Steel City of India?
Jamshedpur is called the “Steel City of India” because the country’s first steel plant was established in Jamshedpur, Jharkhand.
What are the major risks associated with investing in metal sector companies?
The main risk associated with the metals industry is that commodity prices are subject to fluctuations due to global events, and government regulations can also affect the performance of the companies.
